9 Historic Preservation Plan Preservation Tax Incentives Federal tax incentives are available through the Federal Historic Preservation Tax Incentives Program, also administered by the National Park Service. The tax credit program was created to encourage private investment in the rehabilitation of historic buildings, and to promote economic revitalization. Specifically, a property owner can receive a: 20% tax credit for the “certified rehabilitation” of “certified historic structures,” or 10% tax credit for the rehabilitation of non-historic, nonresidential buildings built before 1936. The tax credit program reduces the amount of federal income tax owed by the property owner. A “certified historic structure” includes buildings that are designated as a National Historic Landmark, listed on the National Register of Historic Places, identified as a contributing building in a National Register Historic District, or located in a local historic district that is certified by the National Park Service. Furthermore, the tax credit is available for buildings that will be used for commercial, industrial, agricultural, or rental residential purposes, but is not available for buildings used exclusively as the owner’s private residence. In order to receive the tax credit property owners must submit an application that is reviewed by the State Historic Preservation Office and the National Park Service to ensure that the rehabilitation work is done in accordance with the “Secretary of Interior’s Standards for Rehabilitation.” The IRS generally requires that a minimum of $5,000 be spent on rehabilitating a building in order to qualify for the tax credit. Approximately forty-five properties have been rehabilitated federal preservation tax incentives, particularly to defray the costs of rehabilitating buildings along Main Street. Certified Local Government Program The Certified Local Government (CLG) program integrates local governments with the national historic preservation program through grassroots preservation activities. The Program, jointly administered by the National Park Service and State Historic Preservation Offices (SHPOs) provides technical assistance and small matching grants to communities whose local governments are taking steps to preserve for future generations what is significant from their community’s past. Once CLG status is attained from the National Park Service, local governments are required to enforce State or local legislation for the designation and protection of historic properties, establish and maintain a qualified historic preservation commission, and maintain a system for survey and public participation. Projects eligible for funding and the criteria used to select them are developed annually by the SHPO. Funding decisions are made by the State not the National Park Service. Franklin has been a member of the CLG Program since 1990. State Policies & Programs The Tennessee Historical Commission is the primary state agency in the areas of history and historic preservation. The mission of the Tennessee Historical Commission (THC) is to “record, preserve, interpret, and publicize events, persons, sites, structures, and objects significant to the history of the State and to enhance the public’s knowledge and awareness of Tennessee history and the importance of preserving it.” The Commission also carries out activities and programs authorized under federal legislation, namely the National
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